NHL announces expansion process for Houston and Austin to be owned by Friedkin family

[uhlaw97]

Houston is notorious for not having zoning laws, so it's not an issue of building the place, but a matter of where you can build it. If they build it too far away from major population centers, that could affect the fanbase and you'd need the team to be really good right away to get fans to show up.

Austin would be easier, but then again, they just built a brand-new arena for the University of Texas, so unless the ownership decides to build one themselves, I'm not sure if Austin could support dueling venues for events.

Actually, certain Houston suburbs like Sugar Land, Katy, or The Woodlands would be good spots for a new arena.

That said, the Toyota Center is NHL ready. Perhaps Tilman Fertitta will strike a deal with Friedkin to allow use there.

 

[uhlaw97]

Friedkin has a Master's degree from Houston's Rice University. I hope he remains LOYAL to the city of his alma mater!!!

 

[Brodie]

Would love the Aeros name to be revived along with the 70s aesthetic

 

[Tawnos]

That $3.5 billion number is wild. Just up the road in Dallas, the Stars, depending on the source*, are valued at between $2 and $2.3 billion. The only 2 franchises valued at more than $3.5 billion are the Leafs and Rangers.

*Ya, I know those lists aren't the be all and end all.

It’s not a $3.5B expansion fee. That number includes the cost of building the arena

 

[ForumNamePending]

Right, but I assume when "guesstimating" the value of the franchises, Forbes, or whoever, is also including the arena in that, especially if the team owns the arena, or has "management rights" to it. If you are buying the Stars for $2.3 billion, or the Canadiens for $3.4 billion, etc, I assume you are also buying the arena, or whatever % of the arena the team owns.

Like if this Friedkin fella drops $2.5 billion on an expansion fee, and another $1 billion on a arena + other startup costs, he's going to be disappointed if the team is only valued at $2.5 billion.

 

[LadyStanley]

 

[No Fun Shogun]

Austin has a lot of positives going for it, but Houston absolutely has to be the frontrunner. It is a gargantuan market, even taking into account the fact that it already has major pro teams as it is.

Plus remember, Austin would be like Columbus if it gets a team. A very fine market with the only pro competition being the MLS, but the 800 pound gorilla in the room is the university that essentially operates as multiple major franchises in and of itself. Austin will still be a split pie, too.

 

[Mightygoose]

So it's either or. Billionaire gonna pit a couple cities against each other in the next 6 months or so. Savy negotiators create leverage.

This ought to be fun... with many bursts of silence along the way

 

[Melrose Munch]

Can't Precourt get involved for Austin? Take both. When Atlanta is ready take them.

Atlanta is lucky the chiefs owners or Cincinnati don't care enough.

 

[GKJ]

That $3.5 billion number is wild. Just up the road in Dallas, the Stars, depending on the source*, are valued at between $2 and $2.3 billion. The only 2 franchises valued at more than $3.5 billion are the Leafs and Rangers.

*Ya, I know those lists aren't the be all and end all.

That’s because the valuation includes the building.

Actually, certain Houston suburbs like Sugar Land, Katy, or The Woodlands would be good spots for a new arena.

That said, the Toyota Center is NHL ready. Perhaps Tilman Fertitta will strike a deal with Friedkin to allow use there.

Gary is going to want all owners to own the buildings so they don’t have a repeat of Arizona.

 

[Tawnos]

Right, but I assume when "guesstimating" the value of the franchises, Forbes, or whoever, is also including the arena in that, especially if the team owns the arena, or has "management rights" to it. If you are buying the Stars for $2.3 billion, or the Canadiens for $3.4 billion, etc, I assume you are also buying the arena, or whatever % of the arena the team owns.

Like if this Friedkin fella drops $2.5 billion on an expansion fee, and another $1 billion on a arena + other startup costs, he's going to be disappointed if the team is only valued at $2.5 billion.

Nah, he won’t. He will make money on the team and the arena+surroundings as the value of the franchise increases.

 

[MMC]

 

[ForumNamePending]

That’s because the valuation includes the building.


Gary is going to want all owners to own the buildings so they don’t have a repeat of Arizona.

Nah, he won’t. He will make money on the team and the arena+surroundings as the value of the franchise increases.

Whether this dude makes money or not really wasn't my point. My point simply was it's sorta that someone is getting ready to drop $3.5 Billion to setup shop in Houston or Austin when the well established team up the road could theoretically be had for over a billion $ less, and flagship franchises like the Red Wings, Blackhawks, Bruins and Canadiens for between $2.5 and $3.4 billion. With that said, I imagine in the coming months we will see some pretty big jumps across the board in valuations.

I mean good for this guy that he has that kind of money, or at least access to that kind of money, and good for the NHL that it can demand this kind of money. I'm not criticizing, I just find the numbers .

 

[Headshot77]

Would join New York (3), California (3) and Florida (2) as states with multiple franchises.

Pennsylvania

 

[TheLegend]

Right, but I assume when "guesstimating" the value of the franchises, Forbes, or whoever, is also including the arena in that, especially if the team owns the arena, or has "management rights" to it. If you are buying the Stars for $2.3 billion, or the Canadiens for $3.4 billion, etc, I assume you are also buying the arena, or whatever % of the arena the team owns.

Like if this Friedkin fella drops $2.5 billion on an expansion fee, and another $1 billion on a arena + other startup costs, he's going to be disappointed if the team is only valued at $2.5 billion.

$2 billion expansion fee
$1.2 billion arena
$300 million building actual team (roster, hockey ops, business team, logistics, etc,)

 

[ForumNamePending]

$2 billion expansion fee
$1.2 billion arena
$300 million building actual team (roster, hockey ops, business team, logistics, etc,)

Right, it's going to take $3.5 billion to setup shop in Houston or Austin, while if we all pooled our money together we could own the Bruins for ~$500 million less.

 

[KevFu]

Let’s go crazy with the cheez wiz

Hear me out.

BOTH AUSTIN AND HOUSTON

Hmmm... see...

Austin has a lot of positives going for it, but Houston absolutely has to be the frontrunner. It is a gargantuan market, even taking into account the fact that it already has major pro teams as it is.

Plus remember, Austin would be like Columbus if it gets a team. A very fine market with the only pro competition being the MLS, but the 800 pound gorilla in the room is the university that essentially operates as multiple major franchises in and of itself. Austin will still be a split pie, too.

You are 100% correct on all the reasons Houston should be the "front runner." And that's why the NHL should totally pick Austin instead.

You get the Austin market with their own team, but you also get fans in Houston and San Antonio with the games on TV instead of the Dallas Stars going forward. So you build the fan base up and make that team totally solid financially with a regional fan base across South Texas.

and THEN you put a team in Houston down the line.

Houston will always be big enough for it's own team, regardless of how close they are to Austin. The same isn't true the other way.

 

[Anisimovs AK]

It really doesn’t make sense for an owner like Fertitia to go from full control over the Toyota Center to half with Friedkin.
That’s why Sarver of the suns had no interest in a brand new arena to share with the coyotes in phoenix. He opted for a renovation instead to keep the coyotes out of the market.

Sarver could have just charged them to play there, like he did the first 6 years of the Coyotes existence when they played in America West Arena

 

[StreetHawk]

Sarver could have just charged them to play there, like he did the first 6 years of the Coyotes existence when they played in America West Arena

If he wasn’t an a-hole he’d probably still own the suns and he’d be happy that the coyotes are gone. Less competition for him.
That was probably worth more than any rent the suns would have received.

 

[TheLegend]

Hmmm... see...



You are 100% correct on all the reasons Houston should be the "front runner." And that's why the NHL should totally pick Austin instead.

You get the Austin market with their own team, but you also get fans in Houston and San Antonio with the games on TV instead of the Dallas Stars going forward. So you build the fan base up and make that team totally solid financially with a regional fan base across South Texas.

and THEN you put a team in Houston down the line.

Houston will always be big enough for it's own team, regardless of how close they are to Austin. The same isn't true the other way.

Kev I get the feeling this is going to be Houston OR Austin, not both.

I also tend to think Houston is the preferred destination, bit the Friedkin family will pit both cities against each other on who's going to give them the better deal on the arena..

Sarver could have just charged them to play there, like he did the first 6 years of the Coyotes existence when they played in America West Arena

Jerry Colangelo owned the Suns then. Coyotes would have been worse off under that situation.

And regardless of what people think..... Matt Ishiba has no real desire to own an NHL franchise.

 

[RayMartyniukTotems]

Instead of farming out writing to AI, reporters should stick to doing the work themselves.

But it's cool to see that second Houston group now has a name.

what's that?

 

[RayMartyniukTotems]

Houston Aeros would be a cool name...like ReBrand and make Mark Howe the GM

 

[dj4aces]

what's that?

You should go read the article instead of necroing old posts. Of all the things I've done today, the last thing I expected to be doing is responding to someone who quoted a post from over a year ago.

 

[Anisimovs AK]

Kev I get the feeling this is going to be Houston OR Austin, not both.

I also tend to think Houston is the preferred destination, bit the Friedkin family will pit both cities against each other on who's going to give them the better deal on the arena..



Jerry Colangelo owned the Suns then. Coyotes would have been worse off under that situation.

And regardless of what people think..... Matt Ishiba has no real desire to own an NHL franchise.

The person who owned the Suns at the time they shared the arena is irrelevant to my point, whether or not it would have benefit the Coyotes is irrelevant as well. StreetHawk heavily implied that Fertitta would have to give up some ownership of the arena to have the Houston hockey team play there. As evidenced by the Coyotes first 7 seasons, and the Bruins and Celtics since forever, that clearly isnt the case

 

[Melrose Munch]

Kev I get the feeling this is going to be Houston OR Austin, not both.

I also tend to think Houston is the preferred destination, bit the Friedkin family will pit both cities against each other on who's going to give them the better deal on the arena..



Jerry Colangelo owned the Suns then. Coyotes would have been worse off under that situation.

And regardless of what people think..... Matt Ishiba has no real desire to own an NHL franchise.

I mean 2.5 billion is too much for a gate league. Not my money though.